With the government considering major changes with Fannie and Freddie, this has gotta make lenders nervous about making mortgages.

They are very similar but probably the main reason is that a bond is a security, a debt obligation of a corporation or government entity and a promissory note is not.

Yes, but here is another angle, this guy is in a real hurry to cheat the government it looks like, but he could alsobe cheating creditors, maybe a judgment, divorce settlement even his probation officer from his earnings to pay his past motel bill.

I suspect by the end of the year we could see some more government involvement with tax credits which could spark demand especially if they are given to everyone.

one of my banks just did this to me last week j...he said it was a new policy, but i never thought to ask if it was handed down by government policies or from within the bank itself...he can close on a purchase in 10 calendar days if necessary, but it seems i'm putting up the rehab costs on this next project..unfortunately, it's a large rehab, so it's going to slow me down for the spring a bit..hoping they change their rules soon..

If no individuals (OOs or investors) pay the market price, then they will sell cheap to local government, teachers, policmen, and non-profit organizations.

Ask him what will happen to the real estate market if the government gets out of the lending and lending guarantee business in the long run.

My first reaction is the government would be far better off outsourcing this to a company is already setup to handle these sorts of transactions from A-Z.

I get more than 6% sometimes on my deals.The brokers/agents going out of business has been touted for decades and it still hasn't happened.On flips when the market was hot any idiot could buy a property and make a ton of mistakes.With everything rising they could still most of the time eek out a profit.If they really knew what they were doing they could hit a grand slam.Today you have to do everything perfectly to preserve your margins.You have to go after properties that regular home buyers can't get financing on or are too ugly for them to want.Investors looking to buy paint and carpet only jobs to flip are looking for a needle in a haystack.I don't deal with wholesalers much when I list an REO or a commercial short sale.All they want to do is collect a fee.When I list it the bank and or the seller in pre-foreclosure knows I can easily find them an actual buyer who wants to own the property for awhile and does not need a wholesale price.The bank doesn't care about the wholesaler trying to be a middle man.The bank wants the highest net and so does the seller in pre-foreclosure usually to reduce their 1099-C phantom tax potential.My friends that flipped during the hot times form years ago are now doing development projects redoing downtown warehouse spaces for conversions using government grants etc. to offset costs.They aren't really playing in the residential flip market anymore because of higher risk now and lower profit margins.

It's a bunch of BS created by our current government and is nothing but more bloat in my opinion.Yes if you are a Residential REO agent many of those are drying up as short sales are being pushed through before it forecloses.So YES I know an REO broker friend who has paired down and completed about 800 residential short sales with a 90 plus percent success rate.He is a beast at them and has it down to a science.Now for me I work the commercial real estate side.